Overview
- Japan’s Corporate Goods Price Index rose 2.3% year on year in January, down from 2.4% in December and matching forecasts.
- Yen-denominated import prices increased 0.5% from a year earlier after a revised 0.2% rise in December, pointing to ongoing currency-driven cost pressures.
- Wholesale price momentum has cooled for a second month even as a weaker yen has raised the cost of imported fuel and raw materials.
- The Bank of Japan, which lifted its policy rate to 0.75% in December, is evaluating whether inflation is sustainably aligned with its 2% target.
- Market participants see the latest figures as consistent with gradual policy normalization rather than an immediate additional rate increase.